Bitcoin 1 day outlook 9/9/2020
Good evening everyone and welcome back to my daily look into the exciting world of Bitcoin. Today I have the daily time frame pulled up and right now its pretty evident that we are stuck between a rock and a hard place. We have been coasting along in the lower 10k range for almost a week now, dipping even into the upper 9k range shortly before ultimately recovering back to just above 10k despite the bears best efforts. Now where do we go from here? Are the bears worn out? Lets take a look at the chart.
I threw a few observations onto the chart itself and left a few thoughts explaining my reasoning. Lets look at the deep wicks first. So we have dipped below 10k every single day for the last 7 days. I know it is a blow to bull morale to see us revert back to 4 figure BTC, but every single daily candle over the past 7 days ends up closing above 10k. This is significant in the fact that it shows the market is still resilient despite the best efforts of the bears. Below 10k has been a decent buy zone. But dont depend on this to be the case forever. It will continue to work, at least until it doesn't.
Resistance is pretty obvious at this point in time. The daily cloud has been the authority in rejecting the bulls advances. The bulls certainly have their work cut out for them. I pointed out the head and shoulders pattern I blame for this dip. If it is just the H&S to blame for the drop we could likely see a decent recovery very soon. On the other hand this market is quite shaky and sentiment is mixed as well. If you are dead set on getting into a position at this time make sure that you set a decent stop loss. I just hate seeing people lose too much $$, especially followers.
I have seen news of an exchange getting hacked for potentially millions worth of ETH and other crypto I imagine. I want to take this moment to tell all of you that there is another way to store your crypto that is light years more secure than holding on an exchange like Binance for instance. Get yourself a cold storage wallet. Bitbox is a good choice. So is Ledger Nano. There are others as well but the reviews I read make me think these devices just dont measure up. If you make an investment into crypto why not protect it? I notice one thing about the crypto community... Many people are oblivious to getting hacked or whatever... That is until it happens to them. Storing your crypto online instead of a cold storage wallet is like a ticking time bomb. I keep a minimal amount on an exchange to trade with. Once it builds up (profit) and gets to a decent amount I withdraw to cold storage and those funds are secure. This is part of my trading strategy and I suggest you all come up with your own strategy if you want to be a successful trader.
A few pieces of advice... Take profit when you can. You do not have to cease the trade by taking 100% of the capital away. I typically will take in chunks. Like 20% each time until my initial investment is removed from the equation. Then I play with house money. (This is a good strategy but I must admit there are a few times things went south.. thats when a stop loss comes into play) If I am busy and cannot really trade like I want to I set a stop loss where I think is best (typically just below obvious support) I will walk that stop loss up the chart with the green candles and if the bears strike I rely on that stop loss to sell my bag which then converts it to USDT or another stable coin. I would say 80% of my trades are initiated by a triggered stop loss since I work a 9-5 and just cannot watch the charts as much as I would like to. I mentioned it a little while ago but set a stop loss. I know people are against stop losses. Especially after getting burned by placing a stop loss only to discover the dip was so sudden it didnt trip. And now your profit is all gone! But I always compare a stop loss to a back up parachute on a sky diver. If you are going to jump out of the plane you have a parachute. But what if it fails? That back up parachute is all that is between you and a terminal velocity drop onto the Earth. Granted that back up parachute (stop loss) also has a possibility of failing, I dont know a singe skydiver that prefers to dive without the piece of mind a back up parachute offers. But I digress... I hope you all have a great day, please make good choices! WTFDIK???
